Price of timber?? $350K 53AC just sold for $134K after clear cut; Make sense??

[beppington]

53 acre wooded (PINE) parcel was for sale for $350K (here in FL)

Owner went ahead & harvested the trees & then sold it for $134K

I don't know the prices of timber ... Does it make sense that he might've sold 53 acres worth of pine for $216K? ($350K - $134K) :shocked:

 

[schoolsout]

Doesn't add up to me, but maybe it was dense. We are clearing some pines (about 10 acres that has been thinned already) and looking to get about $6k at the very most.

Pulpwood is paying pretty well at the moment.

Edit: $350k may have been his starting number...You can always lower it, but it can get a bit tricky when you try to raise it on someone during negotiations

 

[RickB]

53 acre wooded (PINE) parcel was for sale for $350K (here in FL)

Owner went ahead & harvested the trees & then sold it for $134K

I don't know the prices of timber ... Does it make sense that he might've sold 53 acres worth of pine for $216K? ($350K - $134K) :shocked:

Well, if he had it listed for $350K and it didn't sell, clearly the seller and his realtor were the only two people on the planet that thought it was worth that much.
And it wasn't.

 

[om21braz]

My father sold pines (40 acres) in 2006 - approx. $1800 per
acre after all costs, including replanting.

 

[Grayson Klassen]

The lumber industry is still coming out of what was the worst slump ever, timber prices are down everywhere. I guess the biggest factor would be the density and age of the trees. Trees are bought and sold by volume, so cubic meter here in Canada and cord in the US. But that volume is based on weight usually tonnes and then converted. If he had lots of first growth and it was fairly densely populated it would be worth a fair amount of money.

 

[beppington]

Doesn't add up to me, but maybe it was dense. We are clearing some pines (about 10 acres that has been thinned already) and looking to get about $6k at the very most.

So you're looking at getting $600 per acre.

My father sold pines (40 acres) in 2006 - approx. $1800 per acre after all costs, including replanting.

And then this $1,800 per acre.

Back to my original scenario, if we assume a pre-clear cut asking price reduction from $350K to $300K & subtract the $134K it actually sold for, that leaves $166K, or $3,132 per acre.

Any chance he got $3,132 per acre for the timber?

 

[MotorSeven]

"Any chance he got $3,132 per acre for the timber?"

"I don't think so Scooter"

 

[arsenix2001]

Using this logic is completely flawed. Asking price minus selling price shows no valuation of the timber. He could have been asking 1,000,000 for it and using this logic the timber would be worth $866,000. The closest you could get using this idea would be to see an "actuall offer" pre harvest that was rejected, and then subtract the after harvest sale price. That may get ya close.

 

[Pilot]

I don't know what kind of volume per acre is possible in Florida or the price per thousand board feet, but here is what is be possible in the PNW for sawlogs:

20,000 BF per acre (easy--200 trees per acre, 12 inch trees of reasonable taper, 100 BF each)
$485 per thousand BF (from State of Oregon log price survey, last quarter of 2011)
50% logging cost (rough number, depends on a lot of factors)

$257,050 net to owner for logs. (20KBF X ($485/2) X 53acres)

$257050+134,000=$391,050

So it comes down to how big the trees are, what the market is like in your area and logging costs.

 

[RickB]

Using this logic is completely flawed. Asking price minus selling price shows no valuation of the timber. He could have been asking 1,000,000 for it and using this logic the timber would be worth $866,000. The closest you could get using this idea would be to see an "actuall offer" pre harvest that was rejected, and then subtract the after harvest sale price. That may get ya close.

Thank you.